Gratuity Eligibility Criteria | When Are You Eligible​ 

Written ByMuhammad Ibrahim Updated on

Gratuity is the end-of-service final benefit that is provided to the employee as a reward for their services. The employee becomes eligible for UAE gratuity if he has worked for at least one year with an employer without any serious misconduct. Below is the complete breakdown of when you are eligible for gratuity in the UAE. 

Banner showing UAE gratuity eligibility criteria

Gratuity Eligibility Criteria

There are specific conditions to become eligible for gratuity in the UAE. Every worker must fulfill the criteria to get gratuity payment. Here are the details about the Labour Court gratuity Eligibility criteria:

You must be a full-time employee under a legal employment contract. The contract can be limited or unlimited. 

Your job comes to a legal end either by termination or resignation.  The reason for ending the employment matters because:

  • If you resign after completing one continuous year, you qualify for gratuity. However, the amount can be less if you resign early.
  • If your contract is terminated by the employer (except for gross misconduct), you’re eligible for full gratuity.
Infographic showing UAE gratuity eligibility criteria

The employee must have completed at least one continuous year with the employer without any serious misconduct, like theft. The misconduct will lead to gratuity denial. 

Both UAE citizens and foreign workers are eligible for gratuity payment. 

The employer must give gratuity payment to an eligible employee within 14 days after resignation or termination. To calculate the gratuity, you can use the MOHER UAE Gratuity calculator.

Factors that cause gratuity denial 

There are some factors based on which your employee can deny your gratuity payment. You must avoid these factors to claim end of the end-of-service benefits:

  • One year of continuous service is a must to get gratuity.  If the employee has not completed at least one full continuous year of service, they are not entitled to gratuity.
  • The employer has the right to deny gratuity payment to an employee who is dismissed due to serious violations or gross misconduct.
  • Interruptions in continuous service, such as unauthorized breaks or extended unpaid leave, can lead to ineligibility.
  • Resigning before completing one year of service will also lead to the disqualification from gratuity.
  • Gratuity may be legally withheld if an employee is found guilty of fraud, dishonesty, or theft related to the employer.  

You will become ineligible if you have one of the above factors. In case you are eligible and the employer is not giving gratuity, you can take legal action according to the UAE labour law. 

How To Avoid Gratuity Disqualification?

Here are some practical tips that would help you to prevent Gratuity denial:

  • Complete at least one full year of continuous service before leaving your job to qualify for gratuity.
  • Maintain good conduct at work to avoid termination for gross misconduct, which can lead to gratuity denial.
  • Avoid unauthorized absences and prolonged unpaid leaves to ensure your service period remains continuous.
  • Understand and comply with your employment contract terms and UAE labor laws to prevent any contract violations.
  • Keep clear records of your employment contracts, payslips, attendance, and official communications.
  • Try to complete at least three years to secure full gratuity entitlement, as resigning earlier can reduce your gratuity.
  • Seek clarification from HR or legal advisors if you’re unsure about any policies related to gratuity or termination.
  • Communicate professionally with your employer during the exit process and follow the proper resignation or termination procedures.
Infographic showing tips to avoid gratuity disqualification

Note: The eligibility for gratuity is the same for both limited and unlimited contracts. 

FAQs

The employee who has worked for a single employer for at least one year becomes eligible. The employee must not be dismissed for any serious violations, like corruption.

No, a shareholder is generally not eligible to receive gratuity unless they are also employed by the company as an employee under a contract.

Yes, immigration visa holders are eligible for gratuity in the UAE as long as they are employed under a valid employment contract and meet the usual eligibility criteria.

A worker becomes eligible after completing one continuous year of service with a single company.

Conclusion

The employee becomes eligible to get gratuity in the UAE after completing one year of service with an employer without any violations. The employer must provide gratuity within 14 days of the employee’s resignation or termination.  

Above is the detailed guide about UAE gratuity eligibility. If you have any issues related to it, contact MOHRE or comment below.

Aslam o Alaikum, I am Muhammad Ibrahim, an expert in gratuity, labour law, and employee benefits with 10 years of experience in the UAE. I hold a degree in Human Resource Management and specialize in gratuity calculations and end-of-service benefits. In my free time, I enjoy reading and traveling.

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